IMD-OWP22-PostEvent-Report-V11[8]

ACTION POINTS

1

We always need to stress-test our assumptions of what we believe are the right/desired growth objectives for our company. Maximizing growth is often the wrong objective. The most successful companies seek sustainable and balanced growth that can be maintained over the longer term. My recent analysis of nearly 400 of the world’s largest multinationals shows that only about one in five has managed to maintain profitable growth over the past three years. Companies that manage to do so showcase a clear understanding of what it means for them to grow sustainably and excel in the execution phase of their strategy.

2

WHAT IS YOUR SOLUTION? Across all sectors, we find companies that choose to grow less than their potential; just take the examples of Trader Joe’s in grocery retail or Brunello Cucinelli in luxury fashion. Their choice to do so is to preserve the DNA of their company and ensure that every single step of their growth process is in full alignment with their core values, while preserving the essence of their value proposition. This is at the heart of their ability to align growth and performance. Their growth journeys can provide relevant insights for other companies looking to grow in a sustainable and balance way.

RECOMMENDED READING

GRACIOUSGROWTH: MANAGING THE TRADE-OFF BETWEEN SUSTAINABILITYAND EXPANSION Niccolò Pisani, Tahiru Azaaviele Liedong, Paolo Taticchi, Tazeeb Rajwani (I by IMD, 12 May, 2022)

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